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2020 Social Responsibility Report of APPOTRONICS
Appotronics Corporation Limited 2020 Social Responsibility Report
Content
06
01 Economic Issues.........................................................................................................................................................................24
About this Report.......................................................................................................................................................................04 1. Performance pressure amid the epidemic.............................................................................................................................................24
2. Intellectual property ...............................................................................................................................................................................28
02
Message about Responsibility...................................................................................................................................06
1. Appotronics’s concept of responsibility...........................................................................................................................................06
07
2. User foremost and technology for good..............................................................................................................................................06
Environment Issues................................................................................................................................................................30
1. Concept of sustainable development..................................................................................................................................................30
3. Green, low-carbon, and healthy development...................................................................................................................................07
2. Energy-saving and environmentally friendly products.....................................................................................................................30
4. Embrace regulation to achieve transparent governance..................................................................................................................07
3. Energy consumption and key environment indicators in 2020........................................................................................................33
5. Put people first by the management mechanism.............................................................................................................................08
6. Scientific prevention and control measures against COVID-19.......................................................................................................08
03 08
Social Issues....................................................................................................................................................................................34
Company Profile........................................................................................................................................................................10
1. Healthcare for employees in prevention of COVID-19.......................................................................................................................34
1. Appotronics - inventor of the ALPD® laser display technology.........................................................................................................10
2. Take the lead in resume production to facilitate economy recovery..............................................................................................34
2. What is the ALPD® technology................................................................................................................................................................11
3. Donate materials to empower scientific epidemic prevention and controlling............................................................................35
3. Route of ALPD® laser display...................................................................................................................................................................12
4. Care eyes with laser display to protect the vision of teenagers.......................................................................................................36
4. Core values................................................................................................................................................................................................13
5. Innovate application scenarios for laser display to care about the mental health of children...................................................36
6. Establish a system to support social welfare as normal activities....................................................................................................37
04 7. Be awarded as the “Most Socially Responsible Listed Company”..............................................................................................37
Stakeholder Analysis............................................................................................................................................................14
1. Stakeholder analysis...............................................................................................................................................................................14
2. Substantive issues...................................................................................................................................................................................16
09
3. Social responsibility management process system..........................................................................................................................17
Corporate Governance........................................................................................................................................................38
1. Corporate governance structure...........................................................................................................................................................38
2. General meeting, board of directors, and board of supervisors......................................................................................................39
05 3. Internal control.........................................................................................................................................................................................41
Social Responsibility Management......................................................................................................................18
1. Employee benefits...................................................................................................................................................................................18
2. Customer benefits....................................................................................................................................................................................21 10
3. Investor relationship.....................................................................................................................................................................................22 Sustainable Development Plan.................................................................................................................................44
4. Government relationship........................................................................................................................................................................23 1. Fulfill corporate environment responsibility to contribute to carbon neutrality..........................................................................44
2. Take lead in healthy development by making innovation................................................................................................................45
3. Pursue a better Appotronics..................................................................................................................................................................46
Appotronics Corporation Limited 2020 Social Responsibility Report About this Report
01 Part I
About this Report
Coverage
In principle, this Report covers Appotronics and its subsidiaries un-
less specifically noted otherwise. For the convenience of expression,
“Appotronics”, “the Company”, and “we” in this Report refer to
“Appotronics Corporation Limited”.
Time range
January 1 to December 31, 2020. To enhance the comparability and
completeness, this Report traces back to past years or extends to 2021
in certain parts.
Date of release
April 23, 2021
Principle of disclosure
When selecting the content for this Report, we followed the principles
of materiality and completeness in the guidelines of the Global Re-
This 2020 Social Responsibility Report of Appotronics Cor- porting Initiative (GRI) (G4) to present statements in economic, social,
poration Limited (hereinafter referred to as“Appotronics”, and environment aspects, with a focus on Appotronics’s sustainable
stock code: 688007.SH) is the second social responsibility development responsibilities in products, environment, employees,
report of the Company since its listing. business partners, and government authorities. Indicators in this Re-
port cover all entities of the Company that may have material effects
On the principles of being objective, standard, transpar- on its financial and operating policies, which coverage is same as the
ent, and comprehensive, this Report, released together annual report.
with the annual report, disclosed the practices and perfor-
mance of Appotronics in operation, environment, society, Data collection
and other responsibility fields in 2020. In this Report, the data and information related to financial indicators
comes from the audited annual report of Appotronics, while the data
and information related to non-financial indicators comes from the
daily management statistics of relevant departments of the Company.
In case of any discrepancy between the disclosed financial data and
the data in the annual report, the latter shall prevail. Appotronics guar-
antees that this Report is free from any false disclosure, misleading
statements, or material omissions.
For any questions, you can reach Appotronics by its social
responsibility email at: csr@appotronics.cn.
Reference standards
This Report was prepared with reference to the G4 Sustainability Re-
porting Guidelines of the Global Reporting Initiative (GRI) and the
Guidelines on Corporate Social Responsibility Reporting for Chinese
Enterprises (CASS-CSR 4.0).
4 5
Appotronics Corporation Limited 2020 Social Responsibility Report Message about Responsibility
02 Part II
Message about Responsibility 3. Green, low-carbon, and healthy development
In essence, as a green industry featuring lower energy consumption, less pollution, and
higher energy efficiency, the technology industry matches with the pursuit of ecology and
1. Appotronics’s concept of responsibility
environment protection in the post-industrial civilization. Technology enterprises can em-
ploy their strong innovative capabilities to make use of cutting-edge technologies to trans-
form the mode of energy utilization and reform the industrial chain and system, hence
The year 2020 is a year for Appotronics to take our initiative in addressing the crisis and
reducing carbon emission during industrial production.
challenge - the spread of COVID-19 throughout the world caused in-depth impact on the
world, and the complicated international conditions also brought more uncertainties. As Appotronics insists on the idea of sustainable development to actively promote energy
we were moving forward under pressure, Appotronics actively fulfilled its responsibilities saving and environment protection. In 2020, we were in conformity with standards in all
as a corporate social citizen by optimizing the corporate governance, continuously making key environment indicators - reduced the average water consumption per device by 35.2%
disruptive innovations, implementing green and low-carbon development, and actively and average electricity consumption by 22.5% year on year, and increased the productivity
performing its environment responsibilities and social responsibilities. by 31% and reduced the working hours by 15% while greatly reducing the energy and re-
source consumption.
Appotronics considers social responsibilities as proper obligations of a corporate citizen
to guarantee the sustainable development of the enterprise. The compliance with laws,
4. Embrace regulation to achieve transparent gover-
regulations, and social rules, the provision of technically advanced products for society,
the win-win development with customers, and the creation of returns to shareholders are
important embodiment of the value of the Company; to promote technical advancement, nance
to focus on the protection of intellectual property rights, and to care about the benefits and
development of employees are inevitable responsibilities of the Company; and social wel- Healthy development also means that we are willing to operate as a transparent and healthy
fare activities, like the support provided in response to COVID-19, reflect our wish for mak- public company - to embrace regulation, make sufficient information disclosure, accept su-
ing contribution to society and promote the stability and prosperity of society. pervision from market participants in an honest and open manner, and improve the level of
corporate governance.
2. User foremost and technology for good
We have defined specific duties and responsibilities for the general meeting, board of direc-
tors, board of supervisors, and independent directors, and established the Strategy Commit-
tee, Nomination Committee, Compensation and Performance Assessment Committee, and
Appotronics believes that, by making unremitting efforts in technical innovations, we will
Audit Committee under the board of directors. The Audit Department, a permanent body
create value for the society, provide better services to the public, and effectively fulfill the
under the Audit Committee, carries out internal business audit and supervision in an inde-
social responsibilities as a corporate citizen. With our persistence on value creation, tech-
pendent and objective manner under the leadership of the Audit Committee, and keeps in
nology innovation, and long-term development, we will continuously make disruptive
routine communication with the Audit Committee to promptly report audit and regulatory
technology innovations in the chosen track to create a better life for people with scientific
information to the board of directors and ensure the effective operation of internal control
innovation. In 2020, we released the smart video and audio operating system Feng OS,
of the Company.
the new laser household cinema D30, the world’s first 100-inch flexible Fresnel anti-light
screen, Fengmi laser TV 4K Cinema pro, laser micro projector vogue pro, S series large ven- In 2020, we disclosed 4 true, accurate, and complete regular reports, promptly disclosed
ue projectors, and many other new products, enabling us to take the lead in the technology 147 interim announcements on the resolutions of the general meeting and use of offering
development of the industry, provide high-level support for large venues, create fascinating proceeds, and performed the information disclosure obligations in accordance with law to
immersive light and video spaces, and provide consumers with interactive entertainment promptly notify investors of significant operating updates of the Company and progress of
experience with portable large screens to enrich application scenarios. major matters, hence protecting the legitimate rights of investors.
6 7
Appotronics Corporation Limited 2020 Social Responsibility Report Message about Responsibility
5. Put people first by the management mecha-
nism
We uphold the core values of “respect customers, guided by performance, live up to
After the occurrence of the epidemic, we immediately offered our support to the front line
one’s words, criticism and self-criticism”, and are committed to the mission of “new
by providing large laser display screens to Shenzhen Disease Control Center to facilitate
light, new life” to “become the pioneer in the display industry through disruptive tech-
visualization of medical data. Furthermore, we donated customized laser smart projectors
nical innovations and differential mode covering the entire value chain”. We held video
equipped with keyboards and mouse for interaction to medical teams went to Wuhan,
competition of corporate culture, elected the corporate cultural ambassador, organized all
and supported in online education to help children of those went to Wuhan take “online
employees to learn and understand the corporate culture, promoted the implementation
lessons” in a safe way, solving the concerns of the medical staff so that they may focus on
of corporate documents, and upheld the corporate culture as guidelines for daily activities,
fighting COVID-19 without worrying about their home.
hence driving internal innovation and reform by culture to motivate and employees at all
levels to make innovations.
Meanwhile, we formulated incentive programs corresponding to the operating conditions,
objective achievement, and business characteristics, and provided a large platform for
employees to make full play of their talents and achieve personal growth by improving
the internal and external training mechanism, providing diversified promotion routs, and
continuously expanding the scope of employee benefits, hence allowing all “Appotronics
people” to benefit from the development of the Company.
6. Scientific prevention and control measures
against COVID-19
At the beginning of COVID-19, we made quick judgement to establish the “Epidemic-fight-
ing Panel” to implement preventive measures such as environment sterilization, issuance
of facial masks, etc. With the prevention measures implemented immediately, none of our
employees was verified or suspected of being infected. We implemented comprehensive
control and prevention measures on an ongoing basis as normal activities, so as to provide
employees with prevention instructions, materials, and mental care to safeguard the health
and lives of all employees. Appotronics duly resumed production on February 10 as one of
the first high-tech enterprises resuming production in Shenzhen, hence setting an exempla-
ry role in resuming production and promoting economy recovery with safety guaranteed.
8 9
Appotronics Corporation Limited 2020 Social Responsibility Report Company Profile
03 Part III
Company Profile
1. Appotronics - inventor of the ALPD® laser dis- 2. What is the ALPD® technology
play technology
Appotronics is a global laser display technology enterprise holding
globally leading innovative technologies and core patents and capa-
ble of developing and manufacturing core devices. Our products are
widely used in cinema, TV, business education, entertainment, large The brightest artificial light source with the purest colors on
venue, presentation, government, and other display fields. the world by now
Released the world’s first commercial laser light source tech- Laser display is considered as the next generation display
nology in 2007 (registered trademark ALPD®) technology following LCD and OLED
One of the first enterprises listed on the SSE STAR Market - the The ALPD® technology combines the industry basis of semi-
first in Guangdong Province and in the laser display industry conductor laser lighting with China’s advantages in rare
on the A-shares market earth resources
Included in the first batch of stocks for the “STAR 50” After four upgrades, the ALPD ® technology has repeatedly
broken and created brightness and performance records in
the industry to achieve the brightest semiconductor laser
Leader in the laser display industry with technology industri- light source developed and manufactured independently by
alization achieved throughout the world Appotronics
10 11
Appotronics Corporation Limited 2020 Social Responsibility Report Company Profile
3. Route of ALPD® laser display 4. Core values
2020
Released the world’s first 100-inch ALFA flexible
Fresnel anti-light screen
Vision
Got listed on the SSE STAR Market in the first batch To become the pioneer in the display industry through
- the first in Guangdong Province and in the laser
display industry on the A-shares market, stock 2019 disruptive technical innovations and differential mode
code: 688007.SH covering the entire value chain
Created the brand “CINIONIC” in Hong Kong in
cooperation with CFGC, Barco, and CITIC, commit-
ted to providing “global high-end cinema solu- 2018
tions”
Mission
Won the first prize in “Science and Technology
Award” granted by China Society of Motion Pic- 2017 New Light, New Life
ture and Television Engineers
Persist on the track of light, focus on the display indus-
try, and make use of technology innovation
2016
Released the world’s first 700 ANSI lumens
high-brightness laser smart mini projector
to create value for users with better visual experience
Established the first ALPD® laser cinema in China
Film International Cinema in the Happy Mall, Shen- 2014
zhen
Core values
Released the world’s first 100-inch TV, which won
the highest award at Consumer Electronics Show 2013 Respect customers
(CES) 2013 - Product of the Future
Guided by performance
Live up to our words
2007
Invented the disruptive ALPD® laser display tech-
nology
Criticism and self-criticism
Established in 2006, committed to developing
next generation semiconductor light sources with
higher brightness, better performance, and longer 2006
service life
12 13
Appotronics Corporation Limited 2020 Social Responsibility Report Stakeholder Analysis
04 Part IV
Stakeholder analysis
Stakeholder analysis is intended to analyze all individuals (and organizations) interested in the
Stakeholder Related social responsibility matters
Company to advise the Company of impacts on major stakeholders in the formulation of strate-
gies.
Complying with laws, regulations,
Appotronics identified the following stakeholders by sending questionnaires to customers of our
and industry specifications
products, management questionnaire and interview, and interview with investors, relevant gov-
Paying taxes in accordance with
ernment authorities, and the media:
Government authorities, as defenders of market law
Government order, are regulators to determine whether the Protecting and promoting em-
1. Stakeholder analysis authorities Company’s products have conformed to market ployment
disciplines Promoting the development of
advanced technology
Stakeholder Related social responsibility matters Focusing on intellectual property
protection
Investors recognize the investment value and de- Protecting and promoting the in-
velopment prospect of the Company, and promote terests of investors
Investors
the Company to give back to society as a corporate Risk management
citizen Right to know The Company’s sustainable development is More energy-saving and environ-
inseparable from taking priority to ecological en- mental-friendly products
vironment. During the operation, the Company Environmental-friendly produc-
As our customers are mainly product users, it’s
Environment adheres to the principle that an enterprise, besides tion process
the Company’s mission to bring advanced prod-
Provide advanced products and assuming primary responsibility for environmental Energy saving and emission re-
Product cus- ucts to customers. Meanwhile, the Company and
solutions protection, should also actively participate in envi- duction in terms of office environ-
tomers and its partners have established a community with
Provide efficient and high-quality ronmental protection ment
partners shared interests, growing together and sharing
services
success, as to strive to maintain the healthy devel-
opment of the industry
Donating materials to empower
Safeguarding basic rights and in-
The Company has paid great attention to the com- epidemic prevention and con-
As a science and technology innovation compa- terests of employees
munity as a harmony and stability relationship with trolling
ny, the Company believes that it is important for Giving employees competitive re- Community
the community and society can affect the market Taking the lead in resume produc-
Employees the Company to protect the rights, interests, and munerations, welfare and benefits and society
environment and the sustainable development of tion to facilitate economy recovery
welfare of employees since talents are its valuable Providing employees with large
an enterprise Participating in major events, such
wealth and resources room for development and pro-
as the Winter Olympics
motion in career
14 15
Appotronics Corporation Limited 2020 Social Responsibility Report Stakeholder Analysis
2. Substantive issues 3. Social responsibility management process sys-
Considering the core competitiveness, product attributes, product value chain structure,
tem
industry characteristics, and other factors of the Company, as well ass the material matters
The social responsibility management process system consists of several mutually intercon-
identified in the interview feedback information of core stakeholders, the Company believes
nected, mutually independent, and mutually supplementary social responsibility indicators.
that Appotronics’s substantive issues of implementing its social responsibility include:
It is mainly intended to provide a whole set of comprehensive and systematic tools and stan-
dards to promote the social responsibility management of the Company, enhance commu-
nication with stakeholders, and assess the performance in corporate social responsibility.
The Chairman of Appotronics, as the highest responsible person of the social responsibility
management system, leads the orderly and healthy development of social responsibility
tasks from a strategic perspective.
Appotronics believes that it is of great importance to identify the stakeholders of produc-
tion and operation, pay attention to the communication with stakeholders, integrate the
demands of stakeholders to the overall strategy of production and operation, and guarantee
Win together with
Investors’rights customers the legitimate rights and reasonable requirements of stakeholders during its fulfillment of
and interests
corporate social responsibility. To achieve good results in fulfilling its corporate social re-
sponsibility, Appotronics should focus on substantive social responsibility issues identified
by all stakeholders. The Company is looking forward to working with all walks of life, and
persists in the original intention of creating a better world for people.
Employee
rights, inter-
ests, and devel-
Appotronics opment
substantive issues
in social responsibility
Sustainable devel-
opment concept Company’s con-
of the Company tribution to
technological
progress
Intellectual property
protection
16 17
Appotronics Corporation Limited 2020 Social Responsibility Report Stakeholder Analysis
05
1.2 Compensation and benefits of employees
Part V Based on the development objective and talent policy of Appotronics, we regulate the remuner-
Social Responsibility Man- ation management on the basic idea of “matching the market environment, reflecting the value
of talents, and achieving incentive effects”. We combine guaranteed benefits with incentives in
agement balanced consideration of internal fairness and market competitiveness to achieve “consistency
between responsibilities and rights, consistency between capabilities and value, and consistency
between performance and benefits” in the allotment of employee remunerations.
With reference to the operating conditions, objective achievement, and business characteristics
of the Company, we have formulated a corresponding incentive plan focusing on performance
1. Employee benefits
to inspire teams and individuals with outstanding performance, containing profit sharing bonus,
patent rewards, major innovation rewards, sales commissions, sales rewards, ranking rewards
(outstanding employee, quarterly/annual honor awards), and talent spotter rewards.
1.1 Employee structure
At the end of 2020, we have a total of 1,100 employees at the average age of 32, includ-
1.3 Career development of employees
ing 456 employees below 30, representing 44% of the total employees. The ratio of
We classified all positions into 5 position groups according to the position contribution, nature
male to female employees is 7:3. Male employees are slightly more than female em-
of work, and the professional knowledge and skills required - management group, technology
ployees, which is in line with the characteristics of the technology industry.
group, professional group, marketing group, and operation group, set separate career develop-
ment channels for different position groups, and formulated the Provisions on Employee Promo-
tion Management to provide effective guidelines for the development of employees.
44% 7:3
Meanwhile, we make every effort for resource building, helping talents to achieve rapid devel-
opment on the Appotronics platform. After the efforts for years, we have gradually established a
sound talent training system: the “Star Light Program” for the development of college gradu-
ates, the “Sharp Light Program” for the development of grassroots managers, and the “Polar
of the employees are below 30 Ratio of male to Light Program” for the development of middle managers. The continuous talent input and
with the average age of 32 female employees intensive culture inheritance in the training at both the primary and middle level effectively sup-
port the stable development of the Company.
The Company has 369 R&D persons, accounting for 32% of the total number of employ-
ees. 32% R&D persons hold a master or doctor degree, while nearly 90% R&D persons
hold a bachelor’s or higher degree. The core R&D team is led by the internationally Senior Offi-
leading talent in the laser display field, and attracted R&D staff graduated from well- Polar Light cer Training
known domestic and foreign universities covering optical, electronics, materials, phys- Star Light Sharp Light Program
Program
Growth and
ics, mechanical designing, fine manufacturing, etc. Program As a training program development
for middle managers, it programs for senior
As a training program
As a training program is intended to empower officers
for grassroots
for college graduates, trainees with multiple-
managers, it is
it is intended to help business and multiple-
intended to help
32% 32% 90%
them rapidly join team management
promote business
the Company as a knowledge and skills
backbones and
qualified employee. through advanced
technology backbones
This is the source of to management management training,
talent building and posts as a qualified hence serving as a link
foundation of the grassroots manager. between the senior
ratio of R&D staff in total ratio of masters ratio of employees holding a talent hierarchy. level and grassroots.
employees and doctors bachelor’s or higher degree
18 19Appotronics Corporation Limited 2020 Social Responsibility Report Stakeholder Analysis
1.4 Diversified training mechanisms 1.5.3 Annual physical examination for all employees
We comprehensively implement the three-level training management system - training programs We cooperate with physical examination institutions to provide all employees with health
at the Company level, universal capability training at the central level, and field-specific capa- physical examination. In 2020, the physical examination was postponed under the impact
bility training at the department level. The layered and multiple-perspective trainings provide of COVID-19. With the achievement in epidemic prevention throughout China, the physical
a learning and exchange platform for employees, hence cultivating all-round talents required examination of all employees is planned between the middle of December to the middle of
by our business and achieving win-win results of corporate development and personal devel- March 2021. All employees who have joined the Company for three months are qualified for
opment. In 2020, we organized 608 training sessions for a total of 16,500 training hours, which this benefit.
effectively meet the demands for employee personal capability development and organization
1.5.4 Free dinner
capability improvement, which received the employee satisfaction of 9 out of 10 scores.
We provide free dinners for all employees. Employees may claim for a dinner ticket after 6:30
in the evening to take the free dinner at the designated dining hall with the ticket.
2. Customer benefits
2.1 Implement strict quality control to ensure quality output
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We are committed to providing the customers with high-quality products through strict
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quality control. Our production base has passed ISO9001 quality management system
PG PVUPGTDPSFT certification. The contracts executed by us with the customers generally contain quality
assurance clauses, pursuant to which we have the obligation to repair the products sold by
0SHBOJ[FE USBJOJOHTFTTJPOT us that are found to have quality problems during the warranty period (which is 1-3 years
generally) free of charge.
USBJOJOHIPVSTJOUPUBM 2.2. Continuously optimize services to improve customer experi-
ence
Our service team implements the service idea of “customer foremost” and abides by the
national standard Evaluation System for After-sales Service of Commodity and our internal
1.5 Other employee benefits after-sales service management requirements to carryout internal inspection and manage-
ment review, constantly optimize the service procedure, enhance monitoring and manage-
1.5.1 Elect employee representatives to participate in the governance of the Company
ment, and continuously improve the service system. We safeguard the legitimate rights and
The trade union started the registration of representative candidates for the “Second interests of the suppliers, customers and consumers through the measures stated above.
Meeting of Employee Representatives” on April 29, 2020 and carried out the election on
May 7, 2020 to elect 100 employee representatives and 27 representative candidates. During
2.3. Innovate the service mode to support customers in reducing
the term of three years, employee representatives exercise democratic management rights
costs and improving efficiency
and participate in the review of policies and rules involving employee interests. All regular
For the cinema projector market, we took the lead in releasing “Laser as a Service” for
employees are qualified for the election.
cinema laser light sources in the industry. The cinemas just need to pay rents according to
1.5.2 Safeguarding the travel safety at night the length of use, without needing to purchase light sources, which will help the cinemas
We have enabled the Didi corporate version so that all employees may call for cars free of not only effectively reduce equipment purchase costs, labor costs and maintenance costs,
charge by using the Didi corporate version; this solves the safety concerns of employees but also improve their market competitiveness through the high luminance, wide color
after overtime work at night. To ensure equal benefits for employees driving to work, the gamut, high contrast and good picture quality and other technical advantages provided by
Company negotiated with the property management company to provide employees leav- the laser light source of Appotronics.
ing at night with the benefit of free parking for the day.
20 21Appotronics Corporation Limited 2020 Social Responsibility Report Stakeholder Analysis
3. Investor relationship We held performance briefings via video or telephone for the annual report, semiannual re-
port, and third quarter report to build the bridge for communication between the manage-
ment of the Company and the capital market.
3.1 Embrace regulations and make compliant disclosure to re-
spond to concerns of shareholders We communicated with and answered the queries of 190+ investors via the investor hotline.
We received 30+ queries in SSE E-Interaction, and replied to all the queries. Meanwhile, in
The Board Secretary of the Company is responsible for external information disclosure.
consideration of the video dissemination, we opened a WeChat video account to deliver
The Company has designated Shanghai Securities News, China Securities Journal, Securi-
performance interpretation, business progress, management interview, and other updates
ties Times, and Securities Daily as the newspaper and website for information disclosure.
of the Company to investors more vividly.
During the reporting period, we have always duly performed our obligation of information
disclosure in accordance with the Rules Governing the Listing of Stocks on the Sci-tech
Innovation Board of the Shanghai Stock Exchange, the Guidelines on the Application of 3.3 Improve the profit distribution policy and enhance the mecha-
Self-Regulation Rules for Companies Listed on the STAR Market No. 1 - Regulated Operation nism of returns to investors
and other applicable laws and regulations, and our Information Disclosure Policy, to ensure
The Company reviews the shareholder returns plan at least once every three years, makes
that all shareholders and other stakeholders have equal access to the information of the
appropriate and necessary amendments to its profit distribution policy and decides on the
Company. In 2020, we disclosed 4 true, accurate, and complete regular reports; promptly
shareholder returns plan for the giving period according to the opinions of the shareholders
disclosed 147 interim announcements on the resolutions of the general meeting and use
(in particular, holders of public shares), the independent directors and supervisors, subject
of offering proceeds, and voluntarily disclosed the English version of our regular reports,
to the applicable laws, rules, regulations and normative documents.
announcement on the recovery of the cinema business, and social responsibility report. We
performed the information disclosure obligations in accordance with law to promptly notify
4. Government relationship
investors of significant operating updates of the Company and progress of major matters,
hence protecting the legitimate rights of investors.
4.1 Good faith in operation
3.2 Innovate channels for communicating with investors to deliver We insist on good faith in our operation. During the reporting period, neither the Company
the investment value of the company from multiple perspectives nor any director, supervisor, or senior officer was subject to investigation by a competent
In 2020, we made 30+ roadshows in the form of strategy meetings with securities compa- authority, enforcement by a judicial or disciplinary authority, or transferred to judicial au-
nies, on-site reception at the Company, teleconferences, online Q&A, etc., and communicat- thority or investigated for criminal liabilities.
ed with 110+ buyer and seller institutions in over 240 person-times.
4.2 Actively perform the duties as a corporate citizen
30+
4.2.1 Compliant operation and tax payment
We abide by the relevant national laws and regulations, operate in compliance with require-
30+ roadshows
ments, obey the management of the local government, accept the supervision of local regu-
latory authorities, and strictly fulfill our obligations as a taxpayer.
4.2.2 Continuously promote employment
110+ 240
We strictly abide by relevant provisions of the Labor Law and the Labor Contract Law, at-
tach importance to the protection of employee rights and interests, follow the principles
of equality, voluntariness, and coordination to provide employees with equal employment
person-times
communicated with
110+ buyer and for a total of 240
opportunities in accordance with law, so as to establish a regulated and orderly, mutually
seller institutions person-times
beneficial, harmonious and stable relationship to make our contributions for the national
objective of “stable employment”.
22 23Appotronics Corporation Limited 2020 Social Responsibility Report Economic Issues
06 Part VI
Economic Issues
1. Performance pressure amid the epidemic On a quarterly basis, our operating income was RMB 710 million in Q4, up by 13.25% year
on year; the net profit attributable to the Parent Company was RMB 69.7096 million, up by
11.85% year on year, and the net profit attributable to the Parent Company after deduction
of non-recurring profit or loss was RMB 52.1120 million, up by 18.27% year on year. This re-
1.1 Positive trend despite the performance pressure vealed accelerated recovery of the quarterly performance.
In 2020, our operating income was RMB 1.949 billion, leading to the net profit attributable
to the Parent Company of RMB 114 million; the total assets of the Company at the end of
the reporting period was RMB 3.226 billion, up by 4.09% from the beginning of the reporting
period; and the equity attributable to owners of the Parent Company was RMB 2.092 billion, 6OJUNJMMJPOZVBO
up by 5.93% from the beginning of the reporting period. 6OJUNJMMJPOZVBO
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24 MPTT 25Appotronics Corporation Limited 2020 Social Responsibility Report Economic Issues
1.2 Continuously increasing R&D expenses laser TV 4K Cinema pro, laser micro projector vogue pro, S series large venue projectors, and many other new products, en-
abling us to take the lead in the technology development of the industry.
In 2020, we invested a total of RMB 204 million in R&D, representing 10.49% of the operating
income achieved in 2020 and the continuous increase in R&D expenses.
R&D investments in 2020
RMB 204,443,369.10 RMB 1,948,884,176.83 of
total operating income
R&D ratio
10.49%
The world’s first 100-inch flexible Fresnel anti-light screen FengOS smart video and audio operating system
ALPD® technology architecture has been upgraded to the fourth generation. The perfor-
mance of each generation of architecture platform has been improved in an all-round way
as compared to the previous generation, thereby enabling us to maintain the technical and
performance advantages in the industry. We have a group of high-quality R&D personnel, in-
cluding a lot of doctors graduated from famous domestic and foreign universities. Our R&D
team has taken the lead in the research of laser display technology in the industry.
1.3 “Constant” technical innovation
The ALPD ® technology, as the mainstream technology in the laser display industry, has
Fengmi 4K Cinema Pro Laser TV 4K Max
promising prospect for continuous development. This is the first time for China to take the
lead in display technology. With the laser optical engine as the core, upstream and down-
stream industrial chains are connected to create a new technology innovation layout in the
industry, hence promoting technology advancement and development in the display in-
dustry. The increasing R&D investments guarantee a high technical barrier for the Company
to continuously lead the industry. In consideration of long-term development and meeting
the new demands for information display, the Company established the AR Business Divi-
sion for AR layout to explore more hardcore drive technologies, and achieved preliminary
development of ALPD5.0 and ALPD6.0 technologies for next-generation technology around
performance promotion and independent development of an image display chip.
1.4 Frequent release of new products
In 2020, we released the smart video and audio operating system Feng OS, the new laser
household cinema D30, the world’s first 100-inch flexible Fresnel anti-light screen, Fengmi New laser household cinema D30 Fengmi Vogue Pro
26 27Appotronics Corporation Limited 2020 Social Responsibility Report Economic Issues
2. Intellectual property er hand, we realized product innovation through constant technical upgrade, which result
in new patents in an attempt to maintain the high profit margin of core devices, support the
sustainable development of intensive and high-amount investment in R&D innovation, and
2.1 Appotronics’s understanding of intellectual property rights
drive the development of the entire industry by our leading core devices.
Innovation is the first driver for development, while intellectual property rights are intended
to protect innovation. As a globally leading laser display technology enterprise with inno-
2.4 Promote the development of the industry
vative technologies, core patents, and capability of developing and manufacturing core
devices, Appotronics has always persisted on the strategic development idea of “technolo- Based on technology innovation and intellectual property rights, Appotronics is commit-
gy-oriented corporate development” since its establishment in 2006, and practiced the un- ted to applying its core patented technologies to various scenarios and taking the lead in
derstanding of “innovation is the first driver for development, while intellectual property achieving industrialization of laser display technologies. From the laser projection halls at
rights are intended to protect innovation” by focusing on R&D innovation and protection cinemas to laser household cinemas, from business education laser projectors for class-
of intellectual property rights. rooms and meeting rooms to large venue laser projectors, the technical innovation achieve-
ments of our advanced laser display technology are benefiting all the public.
2.2 Establishment of the intellectual property team Based on technology innovation and intellectual property rights, Appotronics is open for
Appotronics has always attached great attention to R&D and intellectual property rights. It cooperation with partners, and focuses on dual-drivers of “core devices + core patents” in
has established the Intellectual Property Rights and Legal Department to support the R&D exploration of the operation mode of intellectual property rights.
system. The department is responsible for patent application, protection of intellectual
property rights, and tracking of technology development trends, so as to transform the R&D 2.5 Take lead in the industry
achievements of the Company into an intellectual property barrier and protect the intellec- As of December 31, 2020, Appotronics has over 2,000 patents granted and filed around the
tual property rights of the Company from infringement. world, ranking the first in the field of phosphor laser display; its patent for the core funda-
mental architecture has been directly cited over 600 times by globally well-known enterprises.
2.3 Main measures for the protection of intellectual property rights
2.3.1 Establish and improve the system of intellectual property rules
We have established measures intended for intellectual property rights, including the Mea-
sures of Patent Management, Measures for the Assessment of Patent Applications, Measures
of Trademark Management, etc., to guarantee scientific management, reasonable alloca-
tion of duties, and smooth implementation for the intellectual property department.
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plored patent-based ecology operation modes to seek and realize our patent value. On one
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hand, we protected our investment in R&D by safeguarding our rights in patents; on the oth-
28 29Appotronics Corporation Limited 2020 Social Responsibility Report Environment Issues
07
At all stages, including product designing, material procurement, and manufacturing
process, we fully implemented the idea of green and environment protection to enhance
control over hazardous substances, and continuously implemented the IEC QC080000 haz-
ardous material control system, so as to achieve international standards in all-round green
Part VII
Environment Issues
designing, green procurement, and green manufacturing.
1. Concept of sustainable development
To promote energy saving, improve energy utilization, reduce operating costs while improv-
ing economic efficiency, and create green products and services for society under the man-
agement ideas of energy saving, environment protection, green, and low carbon. We active-
ly responded to relevant laws and regulations and the call for energy saving and emission
reduction by formulating the Energy and Resources Control Procedure, Environment and
Substance Control Procedure, and Waste Disposal Control Procedure, and implementing
energy-saving and emission-reducing measures at various production stages to reduce our
energy consumption and improve the value per unit of energy consumption.
2. Energy-saving and environmentally friendly
products During production, Appotronics constantly makes improvement for “energy saving and
emission reduction”. We have independently developed and implemented the waste water
2.1 Environmental-friendly production process recovery and reuse system, implemented the project for central air-conditioning system, air
We continuously implemented the ISO 14001 environment management system and imple- compressors, and UV purifier systems, project for product ageing and energy consumption
mented strict environment protection requirements for all production stages and the over- reduction, and project for energy saving on production equipment to minimize the con-
all supply chain with a focus on environment protection. In 2020, our environment manage- sumption of energy and impact on the environment.
ment system passed the certification by China Quality Certification Center consecutively.
2.2 Constantly optimize main production processes
With great attention paid to the improvement of efficiency for the supply chain, we have
optimized all production processes, including investing in the smart line consisting of auto-
matic equipment with a larger scale, which lead to an increase by 31% in production while a
decrease by 15% in production hours in 2020.
Item 2019 2020 % Growth
Production volume 115,400 sets 150,800 sets 31%
Production hours 799,000 hours 678,000 hours -15%
About 158,000 hours were saved in 2020 on the production lines under equivalent produc-
tion volumes compared with 2019
30 31Appotronics Corporation Limited 2020 Social Responsibility Report Environment Issues
2.3 The new supply chain base is officially put into operation 3. Energy consumption and key environment indicators in 2020
The Changzhou factory was officially put into operation in 2020. This will greatly support the development of the Company
in all business fields, especially in the production of whole laser cinema projectors (such as C5 laser cinema projectors) and In 2020, we reduced the average water consumption per device by 35.2% and average electricity consumption by 22.5%
the production capacity of household products (such as flexible screen products released in 2020). The production efficien- year on year.
cy and capacity will be greatly improved.
Energy and resources use/consumption in 2020
Average
Average water
Volume Water consumption Electricity consumption electricity
consumption
(0,000 sets) (ton) (kWh) consumption
(ton/set)
(kWh/set)
Year 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
Quantity 11.50 15.08 22368.0 19012.0 4045752.0 4111249.0 0.19 0.13 35.18 27.26
Decrease in average water consumption Improve efficiency, reduce working hours, optimize the
35.2%
per device in 2020 cleaning process, and recycle waste water
Improve efficiency, reduce working hours, optimize the ageing
Decrease in average electricity
22.5% process, and reduce ageing energy consumption of products;
consumption per device in 2020
optimize and air-conditioning and energy saving system
Key environment indicators in 2020
No. Item Objective Actual Achievement
Complaint on environment pro-
1 0 0 Achieved
tection by external parties
Reduce the average electricity
2 Over 20% 22.5% Achieved
consumption per device
Reduce the average water con-
3 Over 20% 35.2% Achieved
sumption per device
4 Total volume of hazardous waste Less than 2 tons 1.005 tons Achieved
Certification of the environment
5 100% 100% Achieved
protection system
32 33Appotronics Corporation Limited 2020 Social Responsibility Report Social Issues
08
3. Donate materials to empower scientific epidemic
prevention and controlling
Part VIII After the occurrence of the epidemic, we immediately offered our support to the front line
Social Issues by providing large laser display screens to Shenzhen Disease Control Center to facilitate
visualization of medical data, hence offering our help in releasing epidemic information,
patient diagnosis, and tracking of suspected patients and traces in real time, and in video
1. Healthcare for employees in prevention of conferences with governments at various levels and medical institutions.
COVID-19
The year 2020 witnessed the break of the epidemic. At the beginning of COVID-19, we made
quick judgement to establish the “Epidemic-fighting Panel” to implement preventive
measures such as environment sterilization, issuance of facial masks, etc. We implemented
comprehensive control and prevention measures on an ongoing basis as normal activities,
so as to provide employees with prevention instructions, materials, and mental care to
safeguard the health and lives of all employees. None of our employees were verified or
suspected of being infected in 2020.
2. Take the lead in resume production to facilitate
economy recovery
Meanwhile, we donated customized laser smart projectors equipped with keyboards and
With a series of prevention measures and preparation made, Appotronics duly resumed mouse for interaction to medical teams went to Wuhan. Such mobile, portable, high-defi-
production on February 10 as one of the first high-tech enterprises resuming production in nition, and high-brightness smart mini projectors adopt the principle of reflection display,
Shenzhen, hence setting an exemplary role in resuming production and promoting econo- hence generating no direct lights to eyes and no blue lights to avoid visual fatigue after
my recovery with safety guaranteed. On March 3, 2020, European Pressphoto Agency (EPA) viewing for a long period of time. During the period of preventing and controlling the epi-
took a picture of Appotronics’s cinema product shop, depicting our employees inspecting demic, smart mini projectors may be used as auxiliary devices for online education to help
products carefully with text description. After being forwarded by Wall Street Journal, the children of those went to Wuhan take “online lessons” in a safe way, solving the concerns
Guardian, Bajapress, Shutters Stock, The Top 10 News, and other authoritative media, this of the medical staff so that they may focus on fighting COVID-19 without worrying about
picture was widely disseminated in the western world as the “Chinese power” amid the their home.
epidemic.
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